Part 9/13:
Increased Risk of a Systemic Collapse: As banks take on enormous amounts of government debt, their vulnerability to interest rate hikes and market shocks increases. If interest rates spike or if banks face liquidity issues, this could precipitate a crisis similar to, or worse than, 2008.
Inflation and Higher Consumer Rates: While government borrowing costs may fall, private lenders—both domestic and foreign—will likely demand higher interest rates to compensate for increased inflation risks and systemic uncertainties. This means that, for ordinary consumers and businesses, borrowing costs could rise.